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Tutorial: Guaranteed funds

What are guaranteed funds?

Guaranteed funds rank among most conservative investments of collective investments. They are good for investors who prefer certainty (demand guaranteed yield) connected with a lower yield, which is typical for guaranteed products, to the opportunity to invest in potentially more yielding open shares funds without guarantee. Unlike other categories of shares funds, the maturity of the guaranteed funds is defined by the Fund Statute. They assure/guarantee investors that at the end of the investment period they will be paid at least the value of the initial investment, even if the development on capital markets is unfavourable. If capital markets grow, the investor will participate in their development. Guaranteed funds offer medium-term up to long-term investments, the duration/maturity of the funds is normally from 3 to 5 years. The return on the amount invested is assured on the fund maturity, during the investment duration the product can be sold for its market price, which can fluctuate in time.

How do guaranteed funds work?

The goal of guaranteed funds is to guarantee the return of the amount invested at least. It is ensured by investing a major part of the portfolio in money market instruments or bonds of high bonding capacity. Yield exceeding the guaranteed level is achieved by investing a major part of the portfolio in financial instruments, their yield will depend on the development of dynamic/risk assets, such as stocks, commodities, currencies, etc. Then the resulting yield is a combination of the yield of both portfolio parts.

Your advantages

  • Opportunity to participate in the development of assets (stocks, commodities, currency), enabling the investor to achieve high valuation with guaranteed return of the invested amount at least
  • Wide variability thanks to the structure of guaranteed funds
  • Good for investors who are not willing to take the risk of a loss – the return of the amount invested on the maturity day is guaranteed at least
  • High transparency

You should know

  • It is best to hold investment certificates of the fund till its maturity to which the guarantee applies
  • The value of investment in guaranteed funds can go up and down during the fund existence
  • Guaranteed funds are collective investment funds
  • All details on shares funds and risks connected with investments in the funds, including information on the investment company managing the fund, are provided in the Fund Statute


Purchase conditions

Who can buy?

  • Citizens of the Czech Republic or foreign nationals over the age of 18 years (legal representative in the case of a minor)
  • Legal person, natural person–entrepreneur
  • Other entities established under the laws of the Czech Republic (foundations, movements, political parties)

What documents should be signed by the client

  • Investment adequacy questionnaire
  • Contract for the provision of purchase and sale of securities issued by the subjects of collective investment
  • Contract for the opening and management of investment instrument asset accounts

What is needed for signing the Brokerage Contract

  • Natural person
    Valid identity card (ID card or travel, diplomatic or service passport, residence permit)
  • Legal person
    Proof of legal personality – an extract from the Commercial Register (original or certified copy) not older than 3 months, and proof of entitlement to dispose of share certificates signed by representatives
    Document to verify identity (natural persons – e.g. company executive)
  • Other entities
    Proof of legal personality, which is issued by the appropriate authority that either approves or registers their activities. And here, there are no 3 months... isn't it possibly discrimination?



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